Overview

• Effective August 29, the U.S. ended duty-free entry for imports under $800 across all partners, extending a May cutoff for China and affecting 1.36 billion shipments worth $64.6 billion in FY2024.
• Postal operators in more than 30 countries restricted or paused USPS-bound shipments, and some sellers temporarily halted U.S. orders as they reassess pricing and compliance.
• Commercial carriers must now file customs entries and pay tariffs on low-value parcels, while foreign postal services face temporary flat fees of $80–$200 before shifting to origin-country tariff rates.
• A 2024 NBER study estimates up to $13 billion in annual consumer welfare losses from the change, projecting steeper price impacts in lower-income zip codes.
• Early effects include higher checkout prices, customs delays, and business strain, with examples ranging from eBay and specialty retailers flagging import fees to SSENSE citing the policy in a recent bankruptcy protection filing.